Question

which of the following are typically advantages of using a debit card?

• hard to spend more than what you have
• ability to build a credit history
• faster than writing a check
• widely accepted by retailers
• some fraud protection
• none of the above

Explanation:

• "Hard to spend more than what you have": Debit cards draw from your checking account, so you can't spend beyond your available balance, this is an advantage.
• "Ability to build a credit history": Debit cards don't affect credit history (credit cards do), so this is not an advantage of debit cards.
• "Faster than writing a check": Debit card transactions are processed quickly, while writing a check involves more steps (writing, depositing, clearing), so this is an advantage.
• "Widely accepted by retailers": Most retailers accept debit cards, so this is an advantage.
• "Some fraud protection": Debit cards often have fraud protection policies (though limits may exist), so this is an advantage.
• "None of the above" is incorrect as there are valid advantages.

Answer:

• Hard to spend more than what you have
• Faster than writing a check
• Widely accepted by retailers
• Some fraud protection